How to affect Trump’s tariff F1

According to industry expert Mark Galagher, Formula 1 will work for the possible impacts of US President Donald Trump’s recently announced tariff.

The global market staggering and already arising out of the new tariff launched last week, F1 is almost certainly going to feel squeezed in some areas.

The Japanese Grand Prix was the first race weekend since the announcement of new measures and it was clear that an impact should be expected. But how it affects the chain is largely unknown at this time.

The automotive industry would undoubtedly hit the tariff as a whole, some of which were placed in large -scale space as Trump and his team believed that when it came to import and export cars and car components.

Mark Galaghar, who worked as a marketing director in Jordan and head of commercial matters at Red Bull and now the CEO of the performance Insight, offered his expert’s opinion of how teams could be caught in wide tariff pledge.

“This is still the early day and it remains to be seen what effect it is on Formula 1,” he told that James allen on F1 podcast.

“When you see car manufacturers in Formula 1, Mercedes-Benz sold 325,000 vehicles in the United States last year. Mercedes Last year, about 2 million cars were sold, in total about 2.5 meters or 2.6 meters of vehicles. So this is a reasonable proportion to the sale of Mercedes.

“But when you see Ferrari And you see McLarenThen you start seeing a seismic change. So 46% of all McLaren … wholesale sales were in North America, and most of them were in the United States, not in Canada.

“I think there is a really interesting challenge. About 25% of about 25% of the cars that fall out of Maranelo, end in the United States, alone is one of the largest markets for Ferrari with California alone.

“So the potential impact on this is actually important for all manufacturers in Formula 1, with a bright exception, which is a ragin. Renault took out of the United States market in 1987 with a renolt brand, and does not plan to bring. Alpine In the market by 2027. Therefore, you know, Renault is like a standout.

“But for other manufacturers, this is a major, major challenge in the present time. And it also includes General Motors, which, of course, as you know, are coming in Formula 1 with a new cadilac team.”

The HAS grid is already the only American-based team, although HAAS Automation has released a statement in tariff’s response, Autosport understands that as things expects the F1 outfits to be unaffected.

“HAAS automation is in the process of studying the full effect of tariff on our operation,” read it.

“In recent times, we have seen a dramatic decrease in the demand for our machine tools from both domestic and foreign customers. Carefully, we have reduced the production in our only manufacturing plant in Oxonard, California and have abolished overtime, where we have appointed 1700 workers and have been in operation since 1983. We have stopped renting and new employment needs.

“While tariffs will have a significant impact on the HAAS automation business, we are optimistic that the Trump administration will come up with solutions to provide relief for American manufacturers – the solution that will allow us to continue CNC machines in the US, while Oxonard employs thousands of workers in our factory and indirectly in the US factory.

“HAAS automation, especially without reduction in tariff rates for raw materials and components imported in the US, is concerned about the possible decrease of tariffs on machine tools from some countries like Japan, Taiwan and Korea. Such a landscape will be horrific for $ 5 billion US machine tool industry, which is a major scatter of US National Security.

“Machine tools are essential for the entire manufacturing infrastructure in the US. We hope that the Trump administration will follow the US machine tool industry through its promise to protect American manufacturing, especially (1) Tariff exemption for raw materials and components is important for the US machine tool industry, and (2) maintaining tariffs for (2) imported machine tools.”

Internal, along with a possible impact on teams, the possibility of partners and sponsors who consider tightening their purse strs in the next few uncertain months may also give rise to issues below the line.

“We just analyzed Formula 1, (as well) teams and all sponsors of the World Championship and individual race,” said Galagher.

“The American influence of Formula 1 is to see everywhere, either because the decisions are being held in the first place in the United States, or because the United States represents such an important market for companies.

“I am talking about companies like LVMH, who have just announced a 10 -year deal in Formula 1. So the reality is that it is going to have an impact, of course in the short term – and I am going to put a bracket around it – and I think what we see is the next three to six months, as we see what is decided from this trump era.

“If uncertainty and nervousness continue in summer, and God refuses in autumn, you can see that it actually begins to make a significant impact on interaction in the 2026 season.

“There is no question, when you withdraw a step, uncertainty on the relationship between the United States with the rest of the world and the economic impact of these Trump administration tariffs are actually, indeed important.”

F1, and motorbow in general, have had to roll with some punches over the years, but Galagher believes that the owner Liberty Media does not yet have nervousness.

“This will affect Formula 1, whether it is a car manufacturer, whether it is a sponsor in the game, or quite clearly, it would be a overall economic impact globally,” he explained.

“We have faced some beautiful seismic challenges in Formula 1 in the last 20 years. Think about the ban on tobacco sponsorship in the European Union, the 2008 financial crisis, not to mention global epidemic.

“If you go back to the last major financial crisis, it returned to Honda, Toyota and BMW and of course, Ford saw a large scale challenges a few years after a few years after leaving Formula 1.

“Liberty media and of course shareholders, they will follow what is happening very carefully on Wall Street.

“It is listed on the New York Stock Exchange. It has three major events in the United States … The idea is that the next few weeks is going to have an attractive roller coaster, while the Trump administration and world leaders try to find out and find out this new world system. The business needs to be cool.”